Mobaraka works 12 hour days to pay his mortgage. Now he doesn’t know if that is enough

Mobaraka Mohammadi said he works 12 hours a day just to earn money and pay his mortgage.

Ms Mohammadi, 23, from Adelaide’s north, told the ABC she may have to stop university to get more hours if her mortgage payments and living costs rise further. .

“I was actually trying to cut some hours so I could focus on my studies but… if I cut some hours, I wouldn’t be able to pay my mortgage,” he said. .

His house cost him $390,000 and the mortgage repayments were $750 a month.

But amid the latest interest rate hike, Ms Mohammadi’s repayments jumped to $940.

“If there will be more interest than this, (it means) I have to leave my study and I thought about it because I can’t underestimate full-time studies and full-time work.”

Mobaraka Mohammadi works long hours to meet his mortgage payments.(Submitted by: Mobaraka Mohammadi)

The rising cost of food and other expenses has increased his situation and forced him to share money for the first time.

“I’ve never had that problem… but now I’m doing my budget, every week (when) I get my pay slip As it is good, this amount goes to the home loan, then it goes to the bills. , and $50 will go toward my gas.”

He has reduced contact with online shopping to help find savings.

Australia must make ‘tough calls’

The Reserve Bank of Australia (RBA) Cash added 25 basis points last month and settled at 3.1 percent..

Green gardens in the foreground with a housing development and the Melbourne skyline in the background.
The Reserve Bank of Australia has raised interest rates since May last year.(ABC News: Gemma Hall)

Mortgage broker Gracious Chidhakwa told the ABC that some families are starting to miss their repayments, and he warned that the full impact of the price increase will not be felt for some time.

“Now we see some who have missed their repayments, some who come back to us and say, ‘look, we can repay quickly’, or some who have to sell because they can’t. then this land can afford again,” Ms. Chidhakwa said.

A picture of Gracious Drunk.
Gracious Chidhakwa says mortgage holders should contact their broker if they are struggling.(Presented by: Gracious Drunk)

He said low rents combined with high interest rates have forced rents to rise as landlords pass on the increase. of interest to tenants.

“Those who want mortgages, some have to sell, some have to downsize, some have to make those tough calls,” Ms Chidhakwa said.

“Some have had to make some big cuts, (or) stop their children from going to private schools, put their children back in public schools because of the cost of maintenance.

Ali Kawser, mortgage broker and manager of AK Home Loans in Melbourne’s west, told the ABC that some prospective home owners who foreclosed on their homes and properties last year did not want to continue.

A photo of Ali Kawser.
According to Ali Kawser, there are many people who are not able to continue organizing houses and land.(Submitted by: Ali Kawser)

“Many of them are first time home buyers, they are not investors right now because they don’t have mortgage concerns but the high cost of living.” they are now… because of this, they are not yet in the market, or few are available. in,” said Mr Kawser.

“They don’t know the future… no matter what they plan… they all come undone,” he said.

“Twelve months ago we told them everything is fine, yes you can borrow a lot and everything will be fine, we are happy, but 12 months later we I apologize to them.”

Procedure for the conclusion of a formula

A man stands and smiles as the snow falls.
David Lin said he might have to pick up some regular jobs.(Submitted by: David Lin)

David Lin is anxiously watching Australia’s mortgage rate rise and wondering if he will have to go back to work any time soon.

Mr Lin, a Melburnian in his 30s, died Fixed mortgages before bankruptcy but it will expire next year, which means that if the price stays the way it is, he could be forced to pay an extra $300 to $400 every month.

“It’s affordable. (But) the increase in mortgages is more difficult for a single person,” said Mr Lin, who works in e-commerce.

Leave a Comment